(Bonus Question) What result can we expect to see when goods are nonexcludable? A Consumers demand a higher quantity than they would if they had to pay for what they consumed. B Consumers demand a lower quantity than they would if they had to pay for what they consumed. Firms supply a lower quantity than they would if they incurred the full costs of the provision of the good. Firms supply a higher quantity than they would if they had to pay for what they supplied.

(Bonus Question) What result can we expect to see when goods are nonexcludable? A Consumers demand a higher quantity than they would if they had to pay for what they consumed. B Consumers demand a lower quantity than they would if they had to pay for what they consumed. Firms supply a lower quantity than they would if they incurred the full costs of the provision of the good. Firms supply a higher quantity than they would if they had to pay for what they supplied.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 1CQQ

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